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Your investment of $18,100 at 13.6% compounded quarterly for 7 1/2 years will be worth how much?

1 Answer

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Final answer:

The approximate future value is $52,533.60.

Step-by-step explanation:

To calculate the future value of an investment with compound interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:

  • A is the future value
  • P is the principal amount
  • r is the annual interest rate (in decimal form)
  • n is the number of times the interest is compounded per year
  • t is the number of years

Plugging in the given values from the question, we have:

A = 18100(1 + 0.136/4)^(4 * 7.5)

Calculating this gives us an approximate future value of $52,533.60.

User Vikas Dwivedi
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